One of the most expensive aspects of running a veterinary practice is inventory. It is also one of its greatest assets. Veterinary inventory control and management is often overlooked, with focus instead on billing and marketing. Managers must be able understand the owners vision and take the steps to ensure it becomes reality. This includes being able implement new processes and procedures. An effective veterinary manager is able to juggle the everyday needs of the practice as well as oversee inventory control. An ideal candidate will have knowledge of and experience working with drugs, vaccines, regulations and usage.
The manager must be able to understand the importance of inventory as an asset. Mishandled assets result in the loss of profits. Losses may come from incorrect mark ups on the drugs or extended shelf life, which will mean they will be disposed of rather than used. Procedures proven to be effective in managing veterinary inventory control include monitoring the supplies and medications used and ordered on a consistent basis. Frequent communications with the distribution companies, meeting with the sales reps and customizing the order schedule help reduce excess overhead and may help in receiving better pricing.
Inventory control management is only part of the big picture. As the practice grows, the manager’s duties expand. Managing the inventory becomes a task for other staff members, taking time away from their other duties. For successful growth without losing control of expenses, it is crucial to have a veterinary inventory control system that will track and manage this asset. Systems that are fully integrated into existing management software are instrumental in improving cash flow and profitability. Strong inventory and costing systems allow the veterinary manager to analyze the trends and manage the business more efficiently.
Protocols for ordering, receiving and stocking the inventory can be tailored to meet the needs of the practice. The results are reduced inventory costs. These systems are developed to encompass all areas of veterinary inventory control. Some have the ability to connect to the distributor for automated ordering. Others allow for bar code scanning of supplies to ensure loss is minimized. Reporting options allow the manager to analyze all aspects of inventory and its overall effect on the business. Efficient inventory control not only helps reduce costs for inventory, it streamlines and automates processes that would normally require dedicated personnel.
Why do some veterinary clinics run so smoothly and others seem to be so chaotic all of the time? Some clinics can handle many people at once and others can only handle one or two at a time. Space definitely has something to do with it, plus patient flow and flow of charts has a lot to do with the amount of congestion in a clinic, along with the attitude of the veterinarians.
Have you ever wondered why some veterinarians are very successful as far as keeping clients happy and having profitable average transactions and others either make everyone mad or have horrible average transactions? There could be many reasons for this, but over my thirty years of experience, I have seen a lot of young veterinarians come and go, some with a lot of success and some with very little. Last week I talked about the different attitude of professionalism that we see from our veterinarians today and how it does not have the same meaning as it did years ago.
We will continue to talk about goal setting. Last time we talked about how important it is to set goals because of the barriers we may face along the way. Goals will keep us focused on what we are trying to accomplish and not let those barriers stop us. Today we will talk about how we need to set goals to solve problems. Any organization, whether it is a few employees or many, will have problems. Instead of getting down on ourselves, we need to be focused on our goals so that we can solve the day to day problems that come up. Problems are nothing more than a way to make money; the more problems you solve, the more money you make.
